Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

May 17, 2011

SNAP Interactive's Q1 Report Results in Aggressive Hiring, New Product Growth

SNAP Interactive, Inc., a leading developer of online dating and other applications that foster the creation of social bonds, released its first quarter financial report, including a 303 percent revenue increase from quarter one in 2010.

With over 40 million installed users, SNAP’s products include a dating service through the Facebook (News - Alert) app, AreYouInterested.com and its recently launched location-based social application, WhoIsNear.com.

As the rest of the nation is suffering from extreme unemployment rates, SNAP’s first quarter results are allowing them to experience a hiring boom and expand their products, according to company officials.

“Our Q1 revenue total represents our eighth consecutive quarter of revenue growth and marks the largest quarterly revenue in SNAP's history,” Clifford Lerner, SNAP’s chief executive officer said, in a statement. “In January we closed a capital raise from institutional investors that netted us nearly $8 million in additional working capital. After several years of operating the company from the approximately $750,000 in capital raised in 2007 and earlier, this funding arms us with the resources necessary to aggressively hire talent and pursue opportunities while preserving the freedom to continue executing our vision.”

Significant financial results from the first quarter report compared to first quarter in 2010 included a 303 percent revenue increase from $927,436 to $3,736,905 and a 238 percent cash increase to $10,205,118 compared to $3,018,876.

AreYouInterested.com has succeeded tremendously since its launch in 2007 and is available on numerous platforms such as the Internet, the iPhone (News - Alert) and Facebook. The process of creating a profile and adding interests is much easier and faster than other online dating sites, such as Match.com or eHarmony, because it works off a user’s Facebook profile, according to the site’s creators.

SNAP's first significant new product launch since AreYouInterested.com is WhoIsNear.com, a unique and innovative location-based service with a fully-integrated Web, mobile, iPhone and social application enabling easy access to a user's social graph. With over 250,000 users and counting, consumers can find out where their friends are, chat with friends and meet people in a nearby location.

Revenue growth for AreYouInterested.com continued to increase after this Q1 report. With the launch of new product WhoIsNear.com, new hires and increased marketing for AreYouInterested.com, SNAP does not expect immediate profit in the upcoming terms, but does foresee it in the long run.

Lerner said, “Accordingly, we're pleased to announce that April produced our highest monthly revenue to date and we look forward to continuing to execute our plan and increasing SNAP's footprint in the social space."

Rachel Ramsey is a TMCnet editorial assistant, contributing news items and feature articles on a variety of communications and technology topics. Rachel has previously worked in PR and communications at The Wriglesworth Consultancy, an award-winning London PR firm. She has also contributed to the creative services department at CBS 3 and The CW Philly in Philadelphia. Rachel is pursuing a degree in journalism and communications at James Madison University.  To read more of her articles, please visit her columnist page.

Edited by Carrie Schmelkin

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